Ireland: Upward trend in inflation continues for a third consecutive month
November 10, 2010
In October, consumer prices registered no change over the previous month, which contrasted the 0.1% decrease recorded in September and was below market expectations of a 0.1% increase. According to the Central Statistical Office (CSO), higher prices of gas and other fuels were offset by notable price drops in clothing and footwear. Annual inflation stepped up from 0.5% in September to 0.7% in October, marking the third consecutive month that inflation was in positive territory. Meanwhile, annual HICP inflation (based on the harmonised index of consumer prices) rose from minus 1.0% in September to minus 0.8% in October. In the October Quarterly Bulletin, the Central Bank forecasts the harmonised index HICP inflation to reach minus 1.4% this year before rising to 1.1% next year. Consensus Forecast panellists anticipate consumer prices to decrease an average 1.0% this year, which is down 0.1% over last month's forecast. For 2011, the panel expects inflation to rebound to 0.8%.